Up North Progressive

The Michigan Department of Insurance and Financial Services (MIDIFS) asked for innovative ideas on how to stabilize and lower costs on health insurance in Michigan today. Who are they asking? The presidents and CEO’s of health insurance companies.

The state budget for 2019 provides for an actuarial study to implement a state innovation waiver provided in Section 1332 of the Affordable Care Act. This act makes it possible to apply for a waiver for certain parts of our federal health insurance law to make health care less expensive.

And somehow MIDIFS thinks the people who pay out millions of dollars in lobbying fees to Michigan politicians have the answers. According to MIDIFS Director Patrick McPharin:

“While the most common waiver sought has been for some form of a reinsurance program, there are other programs states could pursue. I am asking these insurers to submit their recommendations on a potential reinsurance program, and any other waiver ideas they think DIFS should study.”

Reinsurance if you’re wondering is insurance for insurance companies to provide health coverage to previously uninsured patients without driving up the cost of premiums for everyone else – a practice pre-ACA insurance companies indulged in because it made more money for the insurance companies’ shareholders and CEOs. Reinsurance coverage was included in the ACA temporarily until 2016. In 2017, when the money that was supposed to be provided to the reinsurance program fell short, the Republicans in Congress made sure shortfalls were paid to the US Treasury like they were supposed to and the reinsurance program floundered from underfunding. And as we all know, premiums are bounding up higher. When Republicans tried to repeal and replace Obamacare, one of the things they included in their new cheaper but better health care plan was continuing the reinsurance program for health insurance companies.

Asking insurance company CEO’s how to fix the rising cost of health insurance is much like asking defense industry contractors the best way to lower the cost of defense spending. What if MIDIFS were to ask someone other than the people getting rich off of an industry how to lower costs? Perhaps they could ask doctors, or nurses, or other medical care professionals who are just as frustrated with our for-profit health care system as patients.

Whatever decision is made, there will be a future public comment period for the rest of us to let MIDIFS and the insurance companies know just how much we appreciate the rising cost of health insurance in Michigan. In the meantime, you can let your opinion be known this November 6, 2018, when you vote for candidates supporting single-payer Medicare for all.